Proportion Of Independent Commissioners Research Articles

Executive Compensation, Executive Character, Tax Avoidance: Does Independent Commissioner Matter?

This study looks at the impact of executive compensation and character on tax avoidance. This study also looks at the moderating influence of the proportion of independent commissioners in this connection. This study uses secondary data from financial statements from consumer products businesses listed on the Indonesia Stock Exchange between 2017 and 2021, retrieved from www.idx.co.id. The overall sample size for this study was 85 observations, as determined via purposive sampling. Multiple linear regression was used to evaluate panel data. This research concludes that executive compensation is positively related to tax avoidance, while executive character does not affect tax avoidance. Furthermore, the proportion of independent commissioners succeeded in reducing the positive influence of executive compensation on tax avoidance, while the role of independent commissioners did not have a role in reducing the positive influence of executive character on tax avoidance. This research is expected to be a means for the Indonesian Tax Authority to create policies for profiling company compensation characteristics for executives as an initial indicator of tax avoidance activities carried out by companies.

Sustained or Not: Does Intellectual Capital Strengthen CEOs and Independent Commissioners on the Sustainability of Their Companies?

This research aims to investigate the relationship between CEO characteristics in the form of educational background and independent commissioners on sustainability reports with intellectual capital as a moderating variable. The population selected in this study were non-financial companies included in the LQ45 index for the 2018-2022 period, and 12 samples were selected based on the purposive sampling method. For the hypothetical analysis in this research, panel data regression analysis and moderate regression analysis (MRA) with Eviews 12 were used. This research shows that the characteristics of the CEO and independent commissioners have a simultaneous and partial effect on sustainability reports. However, CEO characteristics that are moderated by intellectual capital have a negative influence on the sustainability report. In contrast, independent commissioners positively influence the sustainability report after being moderated by intellectual capital. This research contributes to the application of stakeholder theory, resource-based theory, and agency theory. The novelty of this study is the empirical finding that CEO characteristics and independent commissioners can encourage the sustainability report. However, the moderated effects of intellectual capital differ for both CEO characteristics and independent commissioners on sustainability reports. This research also has several implications for shareholders and stakeholders; one of them is for investors that companies with CEOs with economic and business educational backgrounds and a high proportion of independent commissioners have a sustainable business strategy that can serve as an indicator for long-term investment.
 Keywords: characteristic CEO, independent commissioner, intellectual capital, sustainability report

The Influence of Good Corporate Governance and Liquidity on Tax Management in Indonesia: The Study on Manufacturing Companies

The aims of this study is to analyse the effect of good corporate governance and liquidity on tax management. Tax management is measured by modified measure based on Cash effective tax rate (CETR) compared with corporate tax rate. Corporate governance is measured by proportion of independent commissioner, audit committee, audit quality, institutional ownership, and compensation of executive managements, liquidity is measured by current ratio. This research sample consist manufacturing companies selected by purposive sampling. There are 14 companies fulfilling the criteria. This research used binary logistic regression analysis. The results of this research indicate that the proportion of independent commissioner and audit quality positively affect tax management significantly. Meanwhile, audit committee, institutional ownership, compensation of executive managements and liquidity do not significantly affect the company's tax management.

Factors Affecting Intellectual Capital Disclosure in Indonesia Banking Companies with Board Turnover as Moderating Variable

This study aims to investigate the relationships between the variables of Proportion of Independent Commissioners, Managerial Ownership, External Auditor Quality, Company Size, and Gender Diversity concerning Intellectual Capital Disclosure, with Board Turnover as a moderating variable. Data sourced from the annual reports of banking companies listed on the Indonesia Stock Exchange spanning from 2018 to 2022 are employed, encompassing 35 out of a total of 47 banking companies. The methodological approach employed is panel data regression analysis, and SmartPLS serves as the analytical tool to assess the hypothesis model. Research findings indicate a positive impact of External Auditor Quality, Company Size, and Gender Diversity on Intellectual Capital Disclosure. Moreover, the empirical evidence suggests no significant influence of the variables Proportion of Independent Commissioners and Managerial Ownership on Intellectual Capital Disclosure. Additionally, Board Turnover, as a moderating variable, is found to be incapable of strengthening the relationships between the Proportion of Independent Commissioners, Managerial Ownership, External Auditor Quality, Company Size, and Gender Diversity in relation to Intellectual Capital Disclosure.

Pengaruh Corporate Governance, Leverage, Dan Profitabilitas Terhadap Manajemen Laba

Financial statements are one of the benchmarks for measuring company performance, and until now the phenomenon of earnings management is still often found. This study aims to examine empirical evidence regarding the effect of corporate governance, the proportion of the board of commissioners, leverage, and profitability on earnings management. Earnings management is an act of manipulating earnings information carried out by management with the aim of benefiting itself. The population of this study were 254 companies in the primary consumer goods sector listed on the Indonesia Stock Exchange in 2019 - 2021. With the purposive sampling data collection method, the research sample was obtained as many as 171 companies. When testing there is residual data that is not normally distributed, outliers are carried out, so that the data processed further is 101 companies. This study provides evidence that managerial ownership and audit committee have a significant negative effect, and institutional ownership has a significant positive effect on earnings management, while the proportion of independent commissioners, leverage, and profitability have no significant effect on earnings management.

The Influence of Firm Size, Capital Structure, Total Assets Turnover Ratio and Liquidity on Financial Performance with Good Corporate Governance as a Moderation Variable in Food and Beverage Sub-Sector Manufacturing Companies Listed on the IDX 2016-2022

This research aims to determine the influence of company size, capital structure, total asset turnover ratio, and liquidity on financial performance with good corporate governance as a moderating variable in food and beverage sub-sector manufacturing companies listed on the BEI in 2016-2022. This research was conducted based on information obtained on the Indonesian Stock Exchange. The sampling technique for this research uses a purposive sampling method. The population in this study were 47 food and beverage sub-sector manufacturing companies listed on the IDX in 2016-2022, and the sample obtained was 20 companies. The data types used are secondary data panel data regression data analysis techniques and moderate regression analysis (MRA) tests with the help of Eviews 10. This research shows that company size has a negative and significant effect on financial performance, capital structure has a negative and significant impact on financial performance, TATO has a positive and significant impact on financial performance, and liquidity has a negative and insignificant effect on financial performance. Good corporate governance can moderate the influence of company size on financial performance; GCG can moderate the impact of capital structure on financial performance; GCG can moderate the effect of TATO on financial performance; and GCG is unable to moderate the influence of liquidity on financial performance. Keywords: company size (firm size), capital structure (DER), total asset turnover ratio, liquidity (CR), good corporate governance (proportion of independent commissioners), financial performance (ROA)

Good Corporate Governance and Liquidity: The Urgency of Risk Disclosure of Manufacturing Companies in Indonesia

The purpose of this study was to determine the influence of the liquidity (those that are proxy ed with current ratio) and good corporate governance (those that are proxied with size of the board of commissioners, proportion of independent commissioners, institutional ownership, and managerial ownership) to risk disclosure. The analytical method used is panel data regression analysis for manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the period of 2016-2018. The research sample consisted of 13 companies with a purposive sampling method. The reason for using the 2016-2018 period is to get the condition of manufacturing companies in Indonesia which were still relatively stable before the Covid-19 pandemic. The results showed that managerial ownership had a significant positive effect on risk disclosure. Liquidity, size of the board of commissioners, proportion of independent commissioners, and institutional ownership do not have a significant influence on risk disclosure. The novelty of this research is the formation of a theoretical model of good corporate governance through indicators of managerial ownership in influencing risk disclosure, thereby providing an overview of the importance of ownership by managers so that risk disclosure can be carried out optimally. This research contributes to the understanding of the factors influencing risk disclosure and provides guidance for companies in improving good corporate governance to achieve optimal risk disclosure.

Controle familiar e desempenho corporativo: o papel dos comissários independentes na redução de problemas de agência

Abstract This study examines the influence of family control on firm performance, taking into consideration the moderating variable of the proportion of independent commissioners. The sample for this research consists of manufacturing sector companies listed on the Indonesia Stock Exchange (IDX) for the period 2012-2018, with 477 observations. Ordinary Least Squares (OLS) regression analysis and Moderated Regression Analysis (MRA) techniques were employed to test the hypotheses. The findings of this research indicate that family control has a significant negative impact on firm performance. Additionally, it was found that the proportion of independent commissioners significantly weakens the negative influence of family control on firm performance.

Corporate Governance, Financial Performance, Auditor Quality, and Tax Agresiveness Propensity

The government continues to strive to increase tax revenue targets. These efforts were followed by the government's consistent efforts to minimize tax avoidance through PP 55 of 2022 by developing tax avoidance prevention instruments. This research was conducted to analyze the relationship between corporate governance, financial performance, and the quality of an entity's auditors on the entity's tendency to act tax aggressively. The dependent variable in this research is tax aggressiveness measured by the effective tax rate. The dependent variables are corporate governance (measured by the proportion of independent commissioners and number of audit committees), financial condition (measured by profitability and leverage), and audit quality (measured by dummy variables). Data analysis uses multiple linear regression analysis. The test results show that profitability has a positive effect, and leverage has a negative effect on the tendency for tax aggressiveness. Other variables, namely corporate governance and audit quality, are proven to have no influence on the tendency for tax aggressiveness.

DOES THE DISCLOSURE OF ISLAMIC CORPORATE SOCIAL RESPONSIBILITY, ISLAMIC CORPORATE GOVERNANCE, PROFITABILITY, AND BANK SIZE AFFECT TAX AVOIDANCE IN ISLAMIC COMMERCIAL BANKS IN INDONESIA?

Abstract— This paper investigates the influence of Islamic Corporate Social Responsibility (ICSR), Islamic Corporate Governance (ICG), profitability, and bank size on tax avoidance in Islamic Commercial Banks in Indonesia. This paper introduces a novel perspective on the factors contributing to tax avoidance within Indonesia's Islamic finance framework. While the general notion of tax management is recognized, this study innovatively explores the intersection of Islamic principles, corporate governance, and tax practices, providing insights that have not been adequately explored in prior research. The study employs a panel data regression analysis, utilizing data from 13 Islamic Commercial Banks spanning 2017-2022, totaling 58 observations. This research approach enables an in-depth investigation into the relationships between ICSR disclosure, ICG, profitability, bank size, and tax avoidance. The empirical findings indicate that ICSR disclosure, the proportion of independent commissioners, and the audit committee positively influence tax avoidance practices. Conversely, the Sharia Supervisory Board and bank size negatively correlate with tax avoidance. Surprisingly, as measured by Return on Assets (ROA), profitability does not significantly impact tax avoidance decisions. This study underscores the intricate connections between Islamic corporate practices, governance structures, and tax avoidance strategies in Islamic Commercial Banks. The research highlights the significance of ICSR disclosure, corporate governance effectiveness, and the presence of religious oversight in shaping transparent and accountable tax practices. Furthermore, the research cautions against overreliance on profitability as a determinant of tax avoidance behaviors.
 Keywords: Bank Size; Islamic Corporate Governance, Profitability; Islamic Corporate Social Responsibility; Tax Avoidance

Human Capital and Institutional Ownership Roles on Profit Sustainability in Banking

Applying the principles of Good Corporate Governance is a major factor in building a solid and reliable corporate fundamentals to achieve sustainable corporate profitability. The aim of this research is to examine the influence of CSR and Independent Commissioners on Profitability which is moderated by Value Added Human Capital and Institutional Ownership. This study uses a quantitative method, where the data source used secondary data taken from the Indonesia Stock Exchange. The contribution of this research is the higher the proportion of independent commissioners, the more independent commissioners will carry out optimal supervision of operational activities. The board of independent commissioners greatly determines the company's success in achieving goals and improving the company's financial performance so that the company's ROA has increased. VAHC can weaken Komi's effect on ROA and is not significant. In principle, appropriate human capital activities can motivate Komi to achieve profitability. Institutional ownership affects company performance because institutional ownership can encourage more optimal supervision and monitoring mechanisms can guarantee shareholder prosperity, so institutional ownership will encourage managers to show good performance in front of shareholders. Institutional Ownership Contribution in moderating the influence of the Committee on ROA.

Environmental, Social, Governance (ESG) Performance and Capital Structure: The Role of Good Corporate Governance

Objective: The purpose of this study is to investigate the impact of Environmental, Social, and Governance (ESG) performance on capital structure, using good corporate governance (GCG) as a moderating variable. Design/Methods/Approach: The sample comprises companies listed on the IDX outside the financial sector that issued financial and sustainability reports between 2017 and 2021. The Global Reporting Initiative (GRI) index measures ESG performance, the capital structure is measured by leverage, and the moderating variable of good corporate governance is measured by independent commissioner proportion. The data are analyzed using the OLS regression technique. Findings: According to the estimation results, ESG performance positively affects the capital structure of non-financial enterprises. Furthermore, good corporate governance does not moderate the relationship between environmental, social, governance, and capital structure. Originality/Value: By focusing on ESG performance and capital structure as evaluated in emerging countries, this study adds to existing research on environmental and social performance and its impact on capital structure. Furthermore, GCG is included as a moderating variable in this study. Practical/Policy implication: Based on the findings, it is suggested that firm executives take steps to expand their ESG practices. This ensures sustainability and increases investor and creditor confidence, resulting in more efficient funding sources for the company.

Influence of Board Directors, Independent Commissioners, Audit Committee on CSR

This research aims to determine how the size of the board of directors, educational background of directors, representation of female directors, proportion of independent commissioners, and audit committees affect CSR. The population in this research is General Banking companies listed on the Indonesia Stock Exchange. The sample used is a general banking company registered on the IDX that publishes annual and sustainability reports. Forty-two conventional general banking company sectors were sampled in the research for the 2018-2022 period. The method used is the panel regression method. This research hypothesis test shows that there is an influence on the educational background of directors. This is because, with more diversity in the educational background of directors, there will be more diversity in supervision, insight, perception, and different skills and expertise on each board of directors, which will complement each other. The variable proportion of independent commissioners also positively affects CSR disclosure. This supports the theory of stakeholders because the decisions taken by the company will be more objective and able to protect all stakeholders. Meanwhile, the variables number of board of directors, representation of women directors, and number of audit committees do not influence CSR. Keywords: Size of Board of Directors, Educational Background of Directors, Representation of Female Directors, Proportion of Independent Commissioners, Size Audit Committee, and CSR

THE IMPACT OF CORPORATE GOVERNANCE ON FINANCIAL PERFORMANCE ON STATE-OWNED ENTERPRISES

This research was conducted with the aim of determining whether corporate governance, as indicated by board size, audit committee size, the proportion of independent directors, and the proportion of independent commissioners, affects financial performance, measured by return on equity. The study was conducted on state-owned enterprises (“SOE”) listed on the Indonesia Stock Exchange from 2019 to 2022. The research used an empirical data analysis method by collecting data from the annual financial reports of publicly listed companies in Indonesia, from which 15 companies were selected. The research data was processed using multiple regression analysis with Microsoft Excel 2019 and EViews 12. The results of the study show that corporate governance significantly influences the financial performance of state-owned enterprises (SOE). Variables such as audit committee size and the proportion of independent commissioners have a positive impact on financial performance, while board size and the proportion of independent directors do not affect financial performance. The research findings emphasize the importance of implementing good corporate governance practices in state-owned enterprises. This includes having a broader audit committee and increasing the proportion of independent commissioners on the board of directors. By optimizing these aspects, state-owned enterprises can enhance their financial performance.

THE INFLUENCE OF LEVERAGE, INDEPENDENT COMMISSIONERS, COMPANY ACTIVITIES AND PROFITABILITY ON SUSTAINABILITY REPORT DISCLOSURES

Purpose – This study aims to examine and analyze the influence of leverage, independent commissioners, company activities, and profitability on disclosure of sustainability reports. The theory used in this research is stakeholder theory and agency theory
 Design/methodology/approach – The type of research used in this research is explanatory research
 Findings – The results of the study show that leverage has a positive and significant effect on sustainability report disclosure. The proportion of independent commissioners has a positive and significant effect on the disclosure of the sustainability report. The company's activities have no effect on the disclosure of the sustainability report. Profitability has a positive and significant influence in increasing the disclosure of sustainability reports.
 Originality – The population is property companies listed on the Indonesia Stock Exchange (IDX) in 2019 to 2021, totaling 79 companies using a purposive sampling method
 Keywords: Leverage, Independent Commissioner, Company Activity, Profitability, Disclosure of Sustainability Report
 Paper Type Research Result

The Influence of Political Connections, Related-Party Transactions, and Corporate Governance on Tax Avoidance in Manufacturing Companies Listed on the Indonesia Stock Exchange

This study aims to examine the influence of political connections, related-party transactions, and corporate governance on tax avoidance. The sample for this research consists of manufacturing companies listed on the Indonesia Stock Exchange during the period of 2014-2019. The sample was selected using purposive sampling technique, resulting in 25 companies. The analytical technique employed in this research is panel data regression analysis using Eviews version 10 software. The research findings indicate that political connections, related-party transactions, the proportion of independent commissioners on the board, audit quality, and the audit committee have a significant influence on tax avoidance in Indonesian manufacturing companies.

Board of Commissioners’ Relationship and Climate Change Disclosure: Evidence from Mining Companies

Climate change is one of the most important environmental challenges, with academics, corporate practitioners, and governments all paying close attention. The purpose of this study is to investigate the impact of board qualities such as independence, nationality, and busyness on climate change disclosure. The study consists of 44 samples and 216 data observations. Secondary data were gathered from annual reports issued by sample companies between 2018 and 2022. Darus et al. (2020) generated 19 carbon emission disclosure items, which were subjected to content analysis. According to the conclusions of the study, a bigger proportion of independent commissioners and commissioners' busyness favorably affect a company's initiative to publish climate change-related information. This study adds to the limited scholarly literature on the association between board characteristics and non-financial disclosure performance. It has significant implications for managers and regulators to pay closer attention to the effectiveness of commissioners' oversight in supporting company environmental actions.

Fraud Pentagon Analysis In Detecting Fraudulent Financial Reporting Using Beneish M-Score Model (On Banking Companies Registered In Indonesia Stock Exchange (Bei) In 2014-2018)

This study aims to detect Fraudulent Financial Reporting as measured using the Beneish M-Score that occurred in banking companies listed on the Indonesia Stock Exchange in 2014-2018 using seven independent variables, namely Financial targets, External pressure, Financial stability, Ineffective monitoring, Rationalization, Capability and Arrogance. The research sample used was 140 of 28 banking companies listed on the Indonesia Stock Exchange in 2014-2018. The type of data used is secondary data in the form of financial reports and company annual reports. The analysis technique used in this study is multiple linear regression analysis where previously the data was tested using the classical assumption test consisting of a normality test, multicollinearity test, autocorrelation test and heteroscedasticity test. The results of this study indicate that the external pressure variable is proxied by Leverage Ratio (LEV), Financial stability is proxied by Asset Changes (ACHANGE), Ineffective monitoring is proxied by the proportion of independent commissioners (IND), and Change in board of directors is proxied by changes in the position of the board of directors (DCHANGE) can detect fraudulent financial reporting. Meanwhile, the Financial Target variable which is proxied by Return On Assets (ROA), Razionalization which is proxied by External Auditor Change (AUDCHANGE) and Arrogance which is proxied by the Number of CEO Photos (CEOPIC) are unable to detect fraudulent financial reporting. Simultaneously all the variables in this study were able to detect fraudulent financial reporting

Pengaruh Good Corporate Governance terhadap Tax Avoidance

The purpose of this study is to determine whether the proportion of independent commissioners, institutional ownership, audit committees and audit quality have effect on the practice of tax avoidance. The research approach used in this study is a quantitative descriptive approach. The population used in this study are manufacturing companies in the consumer goods industry sector which are listed on the Indonesia Stock Exchange (IDX) in 2020 and 2021, namely 50 companies. From the sampling above, the number of samples that met the criteria was 21 companies as a sample, so that the observations for the two periods were 42 (21 x 2). The results of the study found that the Independent Commissioner had a significant positive effect on tax evasion in consumer goods manufacturing companies listed on the Indonesian Stock Exchange (IDX) 2. Institutional ownership had a significant negative effect on tax evasion in consumer goods manufacturing companies listed on the Indonesian Stock Exchange (IDX). Indonesian Stock Exchange (IDX).

Factors Influencing Tax Aggressiveness: Liquidity, Leverage, Earnings Management, Independent Commissioner, Company Size

The purpose of this research is to analyze the effect of liquidity, leverage ̧ earnings management, the proportion of independent commissioners, and company size on the level of corporate tax aggressiveness. This study uses the manufacturing industry listed on the Indonesia Stock Exchange in 2010-2011 as the population. By using a purposive sampling technique, 148 data were selected as samples. The results of multiple regression analysis show that earnings management and company size have a significant influence on the level of corporate tax aggressiveness. Meanwhile, for liquidity, leverage, and the proportion of independent commissioners did not show a significant effect on the level of corporate tax aggressiveness.